[Congressional Record Volume 155, Number 56 (Thursday, April 2, 2009)]
[Senate]
[Page S4369]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself and Mr. Grassley):
  S. 812. A bill to amend the Internal Revenue Code of 1986 to make 
permanent the special rule for contributions of qualified conservation 
contributions; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, I rise today to introduce the Rural 
Heritage Conservation Extension Act of 2009, along with my good friend, 
Senator Grassley from Iowa.
  As we all know, the country, including my home State of Montana, is 
losing precious agricultural and ranch lands at a record pace. While 
providing Montana and the Nation with the highest quality food and 
fiber, these farms and ranches also provide habitat for wildlife and 
the open spaces, land that many of us take for granted and assume will 
always be there. Conservation easements have been tremendously 
successful in preserving open space and wildlife habitat. Montana has 
begun to recognize the importance of using conservation easements to 
preserve these lands. We currently have more than 1.5 million acres 
covered by conservation easements. To some, that may seem like a large 
amount, but this is Montana, a State that covers 93,583,532 acres.
  To assure that open space and habitat will be there for future 
generations, we must help our hardworking farmers and ranchers preserve 
this precious heritage and their way-of-life. The Congress recognized 
this by providing targeted income tax relief to small farmers and 
ranchers who wish to make a charitable contribution of a qualified 
conservation easement. The provision allows eligible farmers and 
ranchers to increase the amounts of deduction that may be taken 
currently for charitable contributions of qualified conservation 
easements by raising the Adjusted Gross Income, AGI, limitations to 100 
percent and extending the carryover period from 5 years to 15 years. In 
the case of all landowners, the AGI limitation was raised from 30 
percent to 50 percent. This provision will expire at the end of this 
year.
  The number of acres protected and easements held by state and local 
land trusts has grown as a result of this incentive. According to the 
Land Trust Alliance, America's Land Trusts protected 535,000 more acres 
with conservation easements in the first two years with the new tax 
incentive than in the previous two years, a 36 percent increase. In 
2006 and 2007, land trusts added over 6,000 easements, about 2,000 more 
than the 2 years before the incentive.
  The Rural Heritage Conservation Extension Act of 2009 would make this 
allowable deduction permanent, building on the success of conservation 
easements. Our farmers and ranchers will be able to preserve their 
important agricultural and ranching lands for future generations, while 
continuing to operate their businesses. Landowners, conservationists, 
the Federal Government, and local communities are working together to 
preserve our precious natural resources.
  This legislation is vitally important to Montana, and to every other 
State in the Nation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 812

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Rural Heritage Conservation 
     Extension Act of 2009''.

     SEC. 2. SPECIAL RULE FOR CONTRIBUTIONS OF QUALIFIED 
                   CONSERVATION CONTRIBUTIONS MADE PERMANENT.

       (a) In General.--
       (1) Individuals.--Subparagraph (E) of section 170(b)(1) of 
     the Internal Revenue Code of 1986 (relating to contributions 
     of qualified conservation contributions) is amended by 
     striking clause (vi).
       (2) Corporations.--Subparagraph (B) of section 170(b)(2) of 
     such Code (relating to qualified conservation contributions) 
     is amended by striking clause (iii).
       (b) Effective Date.--The amendments made by this section 
     shall apply to contributions made in taxable years beginning 
     after the date of the enactment of this Act.
                                 ______